TaxTMI 
TaxTMI 
2024 (6) TMI 1345
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....nterest of justice. 3. At the outset, it is noticed that the appeal filed by the assessee is barred by limitation and is delayed by 3 days. Ld AR of the assessee explaining the reasons for delay has submitted that on receipt of the order immediately the relevant papers were send to the tax consultant for further action. The appeal was to be filed by another outstation counsel, meanwhile the papers were also reportedly misplaced in the office of tax consultant. Thus, a delay of 3 days has been caused which is requested to be condoned. After deliberations, we find the delay caused was unintentional and beyond the control of the assessee, therefor the same has been condoned. 4. Now, we shall be proceeding with to deliberate upon the sole controversy raised by the assessee trust in the present appeal. 5. Ld AR of the assessee has submitted a written submission stating the facts of the case, including contentions of the assessee, supporting case laws and rebuttal to the case laws relied upon by the Ld CIT(E) while rejecting the application of the assessee u/s 80G(5B). For completeness of the facts the same is extracted as under: - a) The appellant is a society register....
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....para-2 & 3 Head Notes) ii) CIT(E) vs. Seth Vinod Kumar Somani Charitable Trust -[2020- 269 Taman 59 (SC) [para-8] iii) CIT vs. Lok Sewa Sansthan Samiti [2019-105 taxmann.com 203(SC) [P-4] iv) CIT(E) vs. O.P. Munjal Foundations [2020-115 taxmann.com 191 (P&H) [Head Notes] v) DIT(E) vs. International Society for Krishna Consciousness- 2011(1) TMI-1394 (Karnataka HC) vi) CIT vs. Rajkot Jilla Gayatri Parivar Trust - 2019- (8) TMI- 466- Gujarat vii) Santshreshtha Gajanan Maharaj Sevabhavi Sanstha Borisavargao Kasij vs. CIT 2022 (12) TMI 338 - ITAT Pune. h) The Id. CIT(E) did not advert upon case laws cited by appellant. The case laws relied upon by Id. CIT(E) are distinguishable on facts: i) In the case of Upper Ganges Sugar Mills Ltd it was held that even if one purpose or object of the trust is religious or substantially religious, the trust will not be eligible for benefit of Section 80G - assessee was not eligible for benefit u/s.80G as it supported prayer halls and places of worships, which is religious purpose. The present assessee itself is accepting that it is a charitable cum religious institution- Provisio....
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....igible for exemption under Section 11 of the Act in view of provisions of Section 13(1 )(b) of the Act - Held that:- The Section requires it to be established that such charitable purpose is not for the benefit of a particular religious community or caste - it needs to be examined. ii. CIT(E) vs. Seth Vinod Kumar Somani Charitable Trust -[2020] 269 Taxman 59 (SC) [para-8] The facts have been discussed in extenso by CIT(E) in his order and are being taken therefrom. The assessee society was granted registration under Section 12AA of the Act by the CIT(E) on 30.11.2015, meaning thereby, the CIT(E) was satisfied that the aims and objects of the assessee were for charitable purposes. No action under Sub section (3) of Section 12AA of the Act had been initiated by the same Officer for cancellation of registration of the assesse-society. Further, the assessee-society in the year of its constitution had received 50% of the donations from the trustees themselves and had utilized the corpus donation for land and building. Ordinarily when an assessee-society is established in the initial years it may be required to set up its place of office from where it would operate and ....
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....s allowed - Thereafter, Commissioner (Exemptions) rejected application under section 80G - It was noted that conditions numerated under section 12AA were in parimateria with conditions as enumerated under section 80G - Whether once it was not disputed that stringent conditions under section 12AA were satisfied, further action could only be taken at end of financial year to determine whether any donation etc. or other conditions of section 80G had or had not been fulfilled - Held, yes - Whether assessee was to be allowed deductions under section 80G - Held, yes [Para 51[In favor of assessee] v) DIT(E) vs. International Society for Krishna Consciousness- 2011(1) TMI-1394 (Karnataka HC) From the material on record, it is clear that the assessee is a society registered under the Societies Registration Act. From the objects of the said society, it is clear that they are carrying on religious and charitable activities. They have been granted registration under s. 12AA and consequently under s. 80G of the Act being satisfied that they are entitled to such exemption. It is only for the first time for the year 2009 the CIT for the first time called upon them to show cause ....
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....or substantially the wholly are of religious nature. However, in this regard, we note that the Ld. CIT has not brought any specific instances suggesting that the activities of the assessee are religious in nature. 8.2 Besides the above, we also note that the assessee has been getting the registration under section 80G(5) of the Act right from the year 1993 to the year 31st March 2006 on the same kind of activities. It is also an undisputed fact that there was no change in the objects and the activities of the trust. Therefore, we are of the opinion that the assessee deserves the registration under section 80G(5) of the Act as per the rule of consistency in view of the judgment of Hon'ble Supreme Court in the case of Radhasoami Satsang reported in 193 ITR 321 wherein it was held as under: "13. We are aware of the fact that strictly speaking res judicata does not apply to income tax proceedings. Again, each assessment year being a unit, what is decided in one year may not apply in the following year but where a fundamental aspect permeating through the different assessment years has been found as a fact one way or the other and parties have allowed that position....
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...., before undertaking such activity. However, in the present context given the facts when the assessee is registered u/s 19AA of the Act and when the provision of section 80G(5)(vi) of the Act has been complied with, we do not see any reason for refusing the assessee the grant of exemption u/s 80G of the Act. The Department has also not brought out a case where they can prove through evidences that the assessee-trust has violated the stipulations contained in sec. 80G(5B) of the Act. In fact, the revenue authorities have not demonstrated anything showing substantial expenditures of the fund received in donation by the assessee for religious purposes and whether it is exceeding the permissible limit of 5%. It has also been mentioned by the Id. CIT (Exemption) that the assessee has not provided head- wise details of various expenditure as per para 4.3 of his order but all these details have been submitted before him and as annexed before us in the paper book. The Id. D.R did not refute these facts. In this scenario it will be also worth mentioning that while exercising the power to reject or accord approval u/s 80G(5) the Commissioner acts as a quasi-judicial authority. Therefore, the....
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....t the activities of the trust though both charitable and religious in nature are not exclusively meant for a particular community or class or serves across the communities and for society at large. In the present case also the assessee society though has charitable as well as religious activities but the quantum of application of funds of the trust are not more than 5%, as treated by Ld. CIT(E). 8. Ld. AR further dew our attention to the income and expenditure account of the assessee society, wherein for the year ended on 31.03.2020, total expenditure incurred were Rs.1,65,529/- as against total income of Rs.3,94,756/-. It is further submitted by the Ld. AR that the expenditure has been incurred under the head Bank Charges & Miscellaneous expenses, Copy Purchase, Printing and Stationery, Salary Expenses, Swadharmi Sahayata Expenses (paid to students as scholarships for educational purposes), interest on TDS etc., and none of these head of expenditure indicates or can be construed under any stretch of imagination as attributable towards any religious activity. Similarly, for the year ended 31.03.2021, total expenditure incurred were Rs.1,37,061/- as against total income of Rs.3,7....
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....n religious activities also but on perusal of the financials of the society it is not emanating that it had incurred any expenditure on such activities for more than 5% of the total income in the relevant period. For the sake of clarity provisions of clause (ii) of section 80G(5), 80G(5B), explanation 3 are extracted as under : Section 80G(5) (5) This section applies to donations to any institution or fund referred to in sub clause (iv) of clause (a) of sub-section (2), only if it is established in India for a charitable purpose and if it fulfils the following conditions, namely :- (i)............ (ii) the instrument under which the institution or fund is constituted does not, or the rules governing the institution or fund do not, contain any provision for the transfer or application at any time of the whole or any part of the income or assets of the institution or fund for any purpose other than a charitable purpose; (iii).......... (iv)......... (v).......... (vi)......... (vii)......... (viii)...... (ix)......... Section 80G(5B)- Notwithstanding anything contained in clause (ii)....
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....acts, and circumstances of the present case, after thoughtful deliberations, we are of the considered view that the assessee society is eligible for grant of approval u/s 80G(5) of the Act, thus, set aside the order of Ld. CIT(E) and direct to grant exemption/approval to the assessee society, accordingly. In the results grounds of the appeal involving the sole issue raised by the assessee in the present case are allowed. 15. In the result, appeal of the assessee is allowed in terms of our aforesaid observations. Order pronounced in the open court on 22/01/2024. ============= Document 1 GOVERNMENT OF INDIA MINISTRY OF FINANCE INCOME TAX DEPARTMENT ITBA/EXM/F/EXM44/2022- 23/1051746506(1) CIT EXEMPTION BHOPAL To. SHRI SADHUMARGI SHANTKRANTI JAIN SHRAVAK SANGH C G ORISSA C-71 C-71 SECTOR-1 DEVENDRA NAGAR 492001,Chhatisgarh India Application No: DIN & Notice No: PAN: CIT EXEMPTION Date: 31/03/2023 AAJAS1694L BHOPAL/2022- 23/12AA/10951 ITBA/EXM/F/EXM44/2022- 23/1051746506(1) FORM NO. 10AD (See rule 2C or 11AA or 17A) Order for registration or approval or rejection or cancellation Permanent Account Nu....